Netflix Co-CEO Ted Sarandos arrived in Brussels on Tuesday, delivering a clear message to regulators ahead of the European Union’s review of streaming rules: do not make regulations overly complex.
In an exclusive interview, Sarandos stated that Netflix can accept regulation but warned the EU against undermining the single market with fragmented rules that vary by country. This comes as EU officials prepare to revise the Audiovisual Media Services Directive.
“It is not a healthy business environment if rules can change mid-production,” Sarandos remarked. He also cautioned that regulators underestimate YouTube’s role as a direct competitor in television viewing, often treating it as a social media platform filled with “cat videos” rather than a major streaming rival.
Sarandos’s appeal for European regulatory support follows shortly after Netflix’s failed acquisition of Warner Bros. Discovery. However, he insisted that the political atmosphere surrounding the deal only “complicated the narrative, not the actual outcome.”
He added that the deal was not subject to political interference and dismissed former President Trump’s remarks calling for the removal of Susan Rice, a Netflix board member and former national security advisor under President Obama.
“That was just a social media post,” Sarandos said. “While not ideal, he frequently makes various statements on social media.”
Sarandos emphasized, “It’s important to recognize that Netflix has become a vital part of Europe’s audiovisual economy. Over the past decade, we have invested more than $13 billion in European content production, making us one of the leading producers and exporters of European stories. We collaborate with over 600 independent production companies in Europe and have created approximately 100,000 production-related jobs through our projects. Therefore, we are engaging with stakeholders to discuss how to maintain, grow, and protect this ecosystem.”
When asked how much political factors influenced the failure of the Warner Bros. Discovery acquisition, Sarandos responded:
Political factors only complicated the public narrative and did not affect the actual outcome. For us, this was always a commercial transaction, heavily regulated in the U.S. and handled by the Department of Justice. We were highly confident there were no regulatory obstacles.
This was a typical vertical transaction, and historically, such deals have never been blocked. There were no overlapping assets or market concentration concerns. Paramount exaggerated non-existent regulatory challenges.
The deal would have benefited the industry, Netflix, and Warner Bros. We planned to retain most existing operations, with synergies mainly in technology and management, not large-scale layoffs.
When asked how AI will change Netflix, Sarandos said:
My core view is that AI should serve as a tool for creators. Just as production tools have evolved throughout history, AI represents a rapid and significant upgrade.
Creators can use AI to achieve what was previously impossible—faster and at lower cost—but most importantly, to make content better. Consumers don’t care about speed or cost; they care about quality.
Our acquisition of InterPositive helps creators use filmed material to enhance their work. It won’t replace screenwriters, actors, or lighting technicians but will make production more efficient and effective.
When asked if AI will diminish the role of voice actors, Sarandos stated:
We’ve conducted extensive A/B testing: viewers immediately turn off content with poor dubbing. The essence of dubbing is performance. Talented voice actors are essential.
AI dubbing may be cheaper, but without human performance, it directly reduces quality. AI may evolve in the future, but it must be developed in collaboration with and trained by human voice actors to improve.
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